From Orlando Sentinel
Here is an interesting article about the problem of vacant homes in metro Orlando.
May 30, 2009
May 24, 2009
A Battle Plan for Refinancing Your Mortgage
From The Wall Street Journal
With mortgage rates holding below 5%, there has rarely been a better time to refinance your home. But with a one-two punch of tighter credit and falling prices roiling homeowners, the process has never been more difficult.
With mortgage rates holding below 5%, there has rarely been a better time to refinance your home. But with a one-two punch of tighter credit and falling prices roiling homeowners, the process has never been more difficult.
May 19, 2009
The Cost Of Waiting To Buy
Many real estate practitioners consider today to be a “perfect storm” for home buyers: numerous homes to choose from, affordable home prices, historically low interest rates and an $8,000 tax credit. What more could a buyer ask for?
There is ample opportunity for quality, affordable homes today and prices just seem to be getting better. However, another critical component of buying a home is your interest rate.
Today, we know where rates are at - and they’re incredible for buyers. However, no one knows where rates will be tomorrow, so have you considered your cost of waiting to buy?
Allow me to demonstrate the monthly payment on a $200,000 home (at a 30 year fixed interest rate):
4.75% = $1,043 per month (this is where rates are today)
5.25% = $1,104 per month (a $61 increase over today’s rate)
5.75% = $1,167 per month (a $124 increase over today’s rate)
6.25% = $1,231 per month (a $188 increase over today’s rate)
If you can buy a great $200,000 home today with a $1,043 monthly payment, why would you wait to buy that same home for a $1,231 monthly payment tomorrow?
There is ample opportunity for quality, affordable homes today and prices just seem to be getting better. However, another critical component of buying a home is your interest rate.
Today, we know where rates are at - and they’re incredible for buyers. However, no one knows where rates will be tomorrow, so have you considered your cost of waiting to buy?
Allow me to demonstrate the monthly payment on a $200,000 home (at a 30 year fixed interest rate):
4.75% = $1,043 per month (this is where rates are today)
5.25% = $1,104 per month (a $61 increase over today’s rate)
5.75% = $1,167 per month (a $124 increase over today’s rate)
6.25% = $1,231 per month (a $188 increase over today’s rate)
If you can buy a great $200,000 home today with a $1,043 monthly payment, why would you wait to buy that same home for a $1,231 monthly payment tomorrow?
May 14, 2009
Notable Trends
As an active participant in the east metro Orlando real estate market, the past month has revealed a couple of notable trends that I would like to share. These trends stand out to me because they’re one of few positive changes that have taken place in our area in the past couple of years.
Home Inventory Down I have seen a notable drop in home inventory levels. Sales are closing – including numerous short sales and bank-owned properties. Buyers still have dozens of similar homes to choose from; however, the only homes that are moving are ones that are priced in line with the market. Over-priced homes don’t stand a chance and quickly go stale with no showings and no potential offers.
Moderately Priced Home Sales Up I have seen a notable increase in sales of homes priced $250,000 and under. The majority of these sales are first-time homebuyers, second home purchases and investors. There are thousands of quality, moderately priced homes available today. I also think move-up buyers would benefit from today’s real estate market – get out there and find a great new home!
First-Time Home Buyer Galore I have seen a notable increase in first-time home buyers in the market. Many practitioners consider today to be a “perfect storm” for first-time home buyers: numerous homes to choose from, affordable home prices, historically low interest rates and an $8,000 tax credit. What more could a buyer ask for?
Short Sales Less Painful I have see a notable improvement in the short sale process. A year ago, a typical short sale offer didn’t even receive a response from the homeowner/lender. Now I am seeing short sale offers being responded to - and most importantly, approved by the lender - within a couple weeks max. For those buyers who have the patience, a short sale home could very well be worth your while.
Home Inventory Down I have seen a notable drop in home inventory levels. Sales are closing – including numerous short sales and bank-owned properties. Buyers still have dozens of similar homes to choose from; however, the only homes that are moving are ones that are priced in line with the market. Over-priced homes don’t stand a chance and quickly go stale with no showings and no potential offers.
Moderately Priced Home Sales Up I have seen a notable increase in sales of homes priced $250,000 and under. The majority of these sales are first-time homebuyers, second home purchases and investors. There are thousands of quality, moderately priced homes available today. I also think move-up buyers would benefit from today’s real estate market – get out there and find a great new home!
First-Time Home Buyer Galore I have seen a notable increase in first-time home buyers in the market. Many practitioners consider today to be a “perfect storm” for first-time home buyers: numerous homes to choose from, affordable home prices, historically low interest rates and an $8,000 tax credit. What more could a buyer ask for?
Short Sales Less Painful I have see a notable improvement in the short sale process. A year ago, a typical short sale offer didn’t even receive a response from the homeowner/lender. Now I am seeing short sale offers being responded to - and most importantly, approved by the lender - within a couple weeks max. For those buyers who have the patience, a short sale home could very well be worth your while.
May 9, 2009
Ideal Time To Sell: Holidays
As we approach Memorial Day, I am reminded of an odd experience I had working with a buyer over a “holiday” weekend.
I worked with an out-of-state buyer on Superbowl Sunday. They had a tight time frame, their checkbook and a pre-approval letter - they were there to buy. I attempted to schedule eight showings several days in advance. Still, five of eight sellers denied the showing request because “we are having a Superbowl party”. The buyer saw three of the homes on their list and made a full price offer on one of them the following morning.
There is an incorrect assumption that buyers don’t house hunt during the holidays; this could not be further from the truth. “Buyers take time off, too” and “everyone leaves town for such-and-such holiday” are seller misconceptions. In reality, any extended weekend - national holidays, federal holidays and school closings – is an ideal time to sell your home.
Buyers Have Time & Energy A ready, willing and able buyer wants to house hunt when they have the time and energy for it. A serious buyer will plan an outing with their agent well in advance. These buyers come armed with a good agent, their checkbook and a pre-approval letter. Isn’t this exactly the kind of buyer you’re looking for?
Minimal Competition There is a limited number of homes available for showing – and therefore, minimal competition - during the holidays. A majority of sellers “close up shop” during the holidays. Some sellers go out of town and choose to deny showings while they are away. And other sellers remain home, but choose to deny showings because they are at home with their families and don’t want to deal with the inconvenience of showings.
There are several federal holidays approaching that will provide many buyers with an extended weekend to house hunt and potentially buy your home.
- Mon 5/25/2009 Memorial Day
- Sat 7/4/2009 4th of July
- Mon 9/7/2009 Labor Day
I worked with an out-of-state buyer on Superbowl Sunday. They had a tight time frame, their checkbook and a pre-approval letter - they were there to buy. I attempted to schedule eight showings several days in advance. Still, five of eight sellers denied the showing request because “we are having a Superbowl party”. The buyer saw three of the homes on their list and made a full price offer on one of them the following morning.
There is an incorrect assumption that buyers don’t house hunt during the holidays; this could not be further from the truth. “Buyers take time off, too” and “everyone leaves town for such-and-such holiday” are seller misconceptions. In reality, any extended weekend - national holidays, federal holidays and school closings – is an ideal time to sell your home.
Buyers Have Time & Energy A ready, willing and able buyer wants to house hunt when they have the time and energy for it. A serious buyer will plan an outing with their agent well in advance. These buyers come armed with a good agent, their checkbook and a pre-approval letter. Isn’t this exactly the kind of buyer you’re looking for?
Minimal Competition There is a limited number of homes available for showing – and therefore, minimal competition - during the holidays. A majority of sellers “close up shop” during the holidays. Some sellers go out of town and choose to deny showings while they are away. And other sellers remain home, but choose to deny showings because they are at home with their families and don’t want to deal with the inconvenience of showings.
There are several federal holidays approaching that will provide many buyers with an extended weekend to house hunt and potentially buy your home.
- Mon 5/25/2009 Memorial Day
- Sat 7/4/2009 4th of July
- Mon 9/7/2009 Labor Day
May 1, 2009
Making Home Affordable Program
Homeowners who are having trouble making their monthly mortgage payments may be able to get some relief by modifying the terms of their loans.
But borrowers may have a difficult time determining if they qualify for a loan modification in large part because loan modification guidelines are not always widely available and busy lenders often have little time to explain them to customers.
The new Making Home Affordable program was released by the US Treasury to help up to seven to nine million US homeowners stay in their homes. This free service can help you find out if you may be eligible for mortgage relief under the MHA Program and if you can receive free credit counseling.
But borrowers may have a difficult time determining if they qualify for a loan modification in large part because loan modification guidelines are not always widely available and busy lenders often have little time to explain them to customers.
The new Making Home Affordable program was released by the US Treasury to help up to seven to nine million US homeowners stay in their homes. This free service can help you find out if you may be eligible for mortgage relief under the MHA Program and if you can receive free credit counseling.
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